#Liquidity101 Bitcoin market, liquidity is essential as it ensures that assets can be bought or sold quickly without experiencing large price fluctuations. Fairer prices and faster, smoother trades are the results of high liquidity. Orders that are executed at lower prices due to slippage and volatility can result from low liquidity. For example, due to low liquidity, you might receive a worse rate than you would at a large bank when exchanging dollars for euros at an airport. In the cryptocurrency space, a little-traded token can be more expensive to buy or sell quickly. As liquidity promotes stability, cryptocurrencies are more useful for regular transactions and financial investments.